6 Ways to Conquer Huge Personal Debts

Thousands of Canadians struggle with huge credit card debts, especially as household expenses rise. In fact, more than 55% of respondents to a recent consumer debt study stated that their credit card debt was their primary source of debt. 

While it can be stressful to think about debt, it is crucial to do some careful planning. Here, Debt Helpers shares some tips on how one can conquer personal debt: 

1. Determine a Timeframe for Paying Off Debt

The first significant step in getting out of debt is deciding how much time and effort a person in debt is willing to put into debt repayment. Once a decision is made, consider making a budget. Know the income and the expenses. Once the gap between the two has been established, make a Debt Elimination Plan. 

2. Try to Make Extra Payments on Your Debt

One can make extra–and often affordable–payments on a debt on a regular basis as opposed to larger amounts once in a while. Experts also suggest that instead of paying the minimum monthly payments, paying off the credit card debt one card at a time may be a better idea. By doing this, one can easily be in control of credit card debt. 

3. Consider the Possibility of Debt Consolidation

Debt Consolidation Loans or Debt Management Programs can help people get rid of debts. It is an excellent way of reducing the overall debt servicing costs. The loans can then be paid off more systematically. However, consolidation loans may lead to unexpected consequences, especially if there is excessive interest. So, it is important to find out the interest rate on the debt consolidation program before agreeing to it.

4. Consider a Debt Settlement Program

A debt settlement program can eliminate debts for a fraction of the cost. But it can only work if the creditor is willing to accept the settlement amount. So, it is important to keep in mind that it is not a guaranteed solution. But, it can help one get rid of debts.

5. Don’t Make the Debt Situation Worse

If one needs money in an emergency and has to turn to a credit card, make sure the debt is cleared as soon as possible. Also, avoid spending on credit cards when already overburdened with debt. If it can be afforded, pay off the balance of the debt using some other means. 

6. Seek Professional Advice

For anyone who needs help, consulting a professional financial adviser is a good option.   Financial planners can help one in creating a comprehensive debt elimination plan. Not only that, these professionals can help people in managing debt in a better way.  However, there are a lot of financial planners available today. Therefore, it is important to find someone who is trustworthy and an expert in the field.

Conclusion

Getting out of debt is not easy, especially if the debt is high. But with a Debt Elimination Plan and careful planning, a person can be debt-free sooner. However, if someone is overwhelmed with debt and doesn’t know where to begin, consulting a company like Debt Helpers can provide debt solutions and consulting services and, ultimately, a better chance of overcoming debt in a much shorter time.

DebtHelpers.ca offers the expertise of some of the best debt consultants in Mississauga, ON, who can provide tailored debt solutions to clients. Reach out to us and take that first step towards becoming debt-free!